EMGS Diversifies into Offshore Subsea Construction Market with Acquisition of Siem Day OSCV

Norwegian geophysical services company Electromagnetic Geoservices (EMGS) has made a strategic move into the offshore subsea construction market by acquiring the Siem Day offshore subsea construction vessel (OSCV). This acquisition marks a significant expansion for EMGS, complementing its existing electromagnetic operations and tapping into the growing subsea construction segment.

The Siem Day, a subsea construction vessel built in 2013 by Vard, is of the design type OSCV 11L. EMGS will operate the vessel under a five-year bareboat charter agreement with the seller, Siem Day II, a subsidiary of Siem Offshore. The charter rate starts at $42,000 per day and will increase to $45,000 per day after December 31, 2025.

The total acquisition price of $108.90 million is structured to minimize upfront cash outlay, with an initial payment of $10.89 million due at charter commencement. The remaining balance will be offset against charter payments, with a final payment at the end of the charter period. EMGS plans to operate the vessel on a term contract post-2025, while also exploring shorter-term opportunities.

EMGS’s long-term strategy includes further growth in the subsea sector through the addition of more vessels. By acquiring a high-quality asset already under contract and with potential opportunities in the dynamic subsea market, EMGS aims to provide its shareholders with exposure to value appreciation in this new business area.

Perestroika is expected to acquire a 20% ownership stake in Siem Day II, alongside Siem Offshore’s 80% ownership. This partnership sets the stage for collaboration and growth in the offshore subsea construction sector.

With this strategic acquisition, EMGS is poised to strengthen its position in the offshore subsea construction market, driving growth and value creation for the company and its stakeholders.